Leasehold

Leasehold means that you just have a lease from a superior landlord, often the freeholder (sometimes called the landlord) to occupy the property for a number of years. The leases are usually long term – often 90 years or 120 years but as high as 999 years – but can be short, such as a matter of months. A leaseholder has a lease with the freeholder, which sets down the legal rights and responsibilities of either side. The freeholder will normally be responsible for maintaining the common parts of the building, such as the entrance hall and staircase, as well as the exterior walls and roof. However, other leaseholders might have claimed their “right to manage”, in which case it is their responsibility. Leaseholders will have to pay maintenance fees, annual service charges and their share of the buildings insurance. Leaseholders normally pay an annual “ground rent” to the freeholder. Leaseholders will have to obtain permission for any major works done to the property. Leaseholders may face other restrictions, such as not owning pets or subletting. If leaseholders don’t fulfil the terms of the lease – for example, by not paying the fees, then the lease can become forfeited.

This ‘Glossary of Terms’ – those commonly used in the realm of property auctions, is monitored and updated regularly to remain a current reference point.

If there are any terms that you have come across which we have not included here and you are unclear about, please do get in touch and we will be happy to provide you with a clear explanation and add the new term to our list.